Bitcoin News Today: Bitcoin ETFs Spark Scarcity Play, Mirroring Gold's 1970s Rise

$985 million in net inflows surged into U.S. spot Bitcoin ETFs on October 3, 2025, marking a significant acceleration in institutional adoption of the cryptocurrency. Data from SoSoValue revealed that BlackRock's iShares Bitcoin Trust (IBIT) led the charge with $791.55 million in inflows, followed by Fidelity's FBTC at $69.58 million and Ark & 21Shares (ARKB) at $35.48 million. This brought total Bitcoin ETF inflows to $985.08 million in a single day, pushing the asset class's total market capitalization to $2.448 trillion and Bitcoin's price near its all-time high of $122,777. The inflows contrasted with Ethereum ETFs, which recorded $233.55 million in inflows-nearly half the Bitcoin figure-indicating a short-term cooling in institutional appetite for ETH-based products.

The surge in Bitcoin ETF demand reflects a broader shift in capital allocation, with institutional investors increasingly viewing the cryptocurrency as a legitimate asset class. BlackRock's IBIT, which entered the top 20 ETFs by assets with $90.7 billion in AUM as of October 2, now accounts for over 80% of the total inflows. This dominance underscores the fund's role as a primary on-ramp for traditional finance institutions, including pension funds and wealth managers. The inflows coincided with Bitcoin's price rebound above $120,000, a level last seen during the 2021 bull market. Bloomberg Senior ETF Analyst Eric Balchunas noted that IBIT's trajectory toward the top 10 ETFs by assets could be achieved by late 2026 if current inflow trends persist.

The ETF-driven liquidity has also reshaped Bitcoin's market dynamics. Total trading volume for Bitcoin ETFs reached $7.52 billion on October 3, representing 6.74% of the cryptocurrency's total market cap. This liquidity has reduced price volatility compared to historical norms, with Bitcoin's 30-day correlation to the Nasdaq 100 at 0.32 and its link to gold at a weak 0.09. JPMorgan analysts highlighted this divergence, arguing that Bitcoin's valuation relative to gold is undervalued by 40%, projecting a theoretical price target of $165,000 if market conditions align. Meanwhile, Ethereum's weaker ETF performance-despite a $4,502.39 price and $544.369 billion market cap-suggests that institutional investors are prioritizing Bitcoin as a store of value over ETH's smart contract utility.

The inflow momentum has been fueled by macroeconomic expectations, including anticipated Federal Reserve rate cuts and a broader shift toward risk-on assets. Bitcoin ETFs recorded $2.25 billion in inflows over four days ending October 3, with BlackRock's IBIT alone absorbing $466.55 million in a single session. This trend aligns with historical patterns, where October has historically delivered 22% average gains for Bitcoin, according to Coinglass. However, technical indicators show mixed signals: while the Relative Strength Index (RSI) remains elevated at 75, suggesting strong buyer control, a bearish butterfly harmonic pattern forming on the price chart warns of potential exhaustion near $128,000–$130,000.

The growing institutional footprint has also intensified scrutiny over Bitcoin's scarcity dynamics. With a daily issuance of 900 new coins from mining, inflows into ETFs now exceed supply by over 10:1, a gap set to widen after the 2024 halving. Arcane Research estimates post-halving demand could outstrip supply by 30:1 on high-flow days, further tightening Bitcoin's liquidity. This structural imbalance has drawn comparisons to gold's adoption in the 1970s, with ETFs serving as a catalyst for mainstream acceptance. However, critics warn of centralization risks, as ETFs and corporate treasuries now hold over 7% of Bitcoin's total supply, raising concerns about market resilience during macroeconomic shocks.